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FICO to cut 15% of staff as mortgage lenders shift credit models
The workforce reduction will begin this week and is expected to finish by the end of FICO's fiscal third quarter of 2027, with about $27 million in pretax charges expected in 2026.
HousingWire reports that Fair Isaac Corp., which provides the Classic FICO credit score used in mortgage underwriting, will cut 15% of its staff and streamline operations. The company said the changes include reducing management layers, simplifying its operating structure, optimizing processes and tools, and integrating AI-driven product development, according to an SEC filing.
HousingWire added that the cuts follow actions by mortgage regulators and large lenders that are adopting competing credit score models. FICO cited the Federal Housing Finance Agency opening the door to VantageScore 4.0 as major lenders begin shifting credit score models.
According to HousingWire, FICO had 3,811 employees as of the end of September 2025, and the workforce reduction began this week. The company expects the changes to be completed by the end of the third quarter of fiscal year 2027.
HousingWire also reported that FICO estimates it will record about $27 million in pretax charges in the fourth quarter of 2026 tied to severance and related costs.